Check on the yen action today, carry trades unwinding at a frantic pace insanity!!
http://www.forexdirectory.net/jpy.html
http://www.forexdirectory.net/jpy.html
Thats been the problem here for years....not enough downside volatility. The fucking fed intervenes everytime the market starts dropping.
Well, finally the problems are larger than the fed, so their hands are somewhat tied.
We need 5-10% down in one day like these other markets in europe and asia.
We could very well get it today.
Cuss, a 9-11 point drop can happen again and I personally believe we will see it today or tomorrow.
Tiznow, load the fucking boat short and ride it down.
Well, finally the problems are larger than the fed, so their hands are somewhat tied.
We need 5-10% down in one day like these other markets in europe and asia.
We could very well get it today.
Cuss, a 9-11 point drop can happen again and I personally believe we will see it today or tomorrow.
Tiznow, load the fucking boat short and ride it down.
shorts give the markets traction as they have to cover/buy at some point short interest is extremely high right now and is what is giving the markets some bouyancy IMO. 2% haircut in the US now.
My QID kickin arse today....it gives me leverage 2x inverse what the nasdaq 100 does.
Interesting. Happen to agree here as did this chap last week when the Fed backed off lowering the rate.....
Addicted to liquidity pretty much sums it up I think:
August 7, 2007
The Fed Got it Right
Seems like there is a cohort of investors who are screaming for the Fed to cut rates. Literally, screaming. But the Fed's purpose is not to bail out investors who have made bad investment decisions.
Rate cuts have become the crack cocaine for some in the market, looking for a hit to feed the addiction of ever higher asset prices. No matter that stocks are a mere 7%-8% off their highs of a month ago. Markets are supposed to go up endlessly. A little turbulence in the market and its time to run screaming to Papa Ben to make the pain go away.
The mess that we are in is due, in large part, to the Fed under Greenspan who hooked the market on to its addiction to liquidity. The result has been enormous distortions in asset markets around the world, from stocks to bonds to private equity to home prices to idiotic commercial real estate prices to emerging markets to art to wine to etc., etc.
Now, the argument goes, the economy is dependent upon asset prices more than ever, and the Fed must support asset prices to maintain the health of the economy.
Nonsense.
A dependence on asset markets is a sign of a weak economy, not a strong one. It is the tail that wags the dog. Like a drunk who wants to avoid a hangover by continuously drinking, the market's hangover will only get worse if we don't sober up take our pain rather than endlessly avoiding it.
So what if some mortgage companies go under? So what if some banks go under? So what if some brokers go under? (Bear Stearns won't be one of them, by the way.) Since when did these institutions have a God given right to exist regardless of their reckless business practices? What happened to free market capitalism?
The Fed did the right thing today because there is no evidence that the economy is going into a recession. (Yet.) Growth is not weak, inflation is too high, unemployment is low, corporate profits are strong, profit margins are near all time highs, the global economy is flying, the dollar is weak, spreads in most fixed income markets are not at high levels, and so on.
However...
The next move in the fed funds target will be down. The language in the Fed statement has become more dovish, evidenced by the last meeting, the prior meeting and the meeting previous to that.
It was the same today.
The difference in language between June's statement and today's statement are as follows, with the differences in red
Second paragraph, then
Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector. The economy seems likely to continue to expand at a moderate pace over coming quarters.
And now
Economic growth was moderate during the first half of the year. Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing.Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.
Fourth paragraph, then
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
And now
Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information.
The Fed acknowledges tightening credit for "some households and businesses" and that the downside risks to growth have increased "somewhat." That language is more dovish.
And, I believe, when the Fed does move, it will be down.
But simply because markets have become "more volatile" does not mean the Fed should step in. The VIX today is barely above the lows of the 1990s.
Only if the financial system is threatened, if tightening credit is pushing the economy into a recession, or if inflation is in the Fed's comfort level should they cut.
Spreads at or above long-term averages and stocks down 7%-8% does not warrant a rate decrease.
And let the reckless, over-leveraged investors pay.
..Dow -235, Noon EST. I'm thinking -400 after the smoke clears
honestly i don't think the fed is doing enough, the fed guy after the bell yesterday coming out and saying we won't cut rates unless a "calamity" happens says it all. think they pretty much saying go ahead and crash. If banks start going pop we have major problems they must keep them solvent they don't want a run on the banks scenerio.
argentina approaching 1 day "crash" territory, down 7.72%, 10% drop in a day generally considered a one day crash. My dxesx is gonna be a monster. 2x inverse the emerging markets.
http://stockcharts.com/h-sc/ui?s=dxesx&p=D&b=5&g=0&id=0
gold now has a 25 dollar haircut going on....so much for those gold coins i got laying around, time to start stuffing funny money dollars under my matress.
http://stockcharts.com/h-sc/ui?s=dxesx&p=D&b=5&g=0&id=0
gold now has a 25 dollar haircut going on....so much for those gold coins i got laying around, time to start stuffing funny money dollars under my matress.
I love how they always blame the bears for the markets going down. Idiots shorts give the markets support without us the markets would free fall we all the bulls are stampeding for the exits like right now!!! We must buy at some point.
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12:30 pm : Stocks continue to tumble as investors liquidate everything they can in an effort to raise money and de-leverage portfolios. The latest shoe to drop has been a very disappointing update on regional manufacturing activity.
At the top of the hour, the Federal Reserve Bank of Philadelphia said that the Philly Fed index fell to 0 in August, the lowest reading since Dec. 2006, from 9.2 in July. Any number below zero indicates contraction.
While the data contrast with the fairly healthy manufacturing conditions reported in the NY Empire State Index yesterday, the weaker than expected report has armed the bears with more fodder to push equities down even further and find a safe haven in Treasuries. The 10-year yield is now down at 4.61%. DJ30 -227.61 NASDAQ -51.30 SP500 -25.93 NASDAQ Dec/Adv/Vol 2145/827/1.34 bln NYSE Dec/Adv/Vol 2695/624/1.16 bln
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12:30 pm : Stocks continue to tumble as investors liquidate everything they can in an effort to raise money and de-leverage portfolios. The latest shoe to drop has been a very disappointing update on regional manufacturing activity.
At the top of the hour, the Federal Reserve Bank of Philadelphia said that the Philly Fed index fell to 0 in August, the lowest reading since Dec. 2006, from 9.2 in July. Any number below zero indicates contraction.
While the data contrast with the fairly healthy manufacturing conditions reported in the NY Empire State Index yesterday, the weaker than expected report has armed the bears with more fodder to push equities down even further and find a safe haven in Treasuries. The 10-year yield is now down at 4.61%. DJ30 -227.61 NASDAQ -51.30 SP500 -25.93 NASDAQ Dec/Adv/Vol 2145/827/1.34 bln NYSE Dec/Adv/Vol 2695/624/1.16 bln
things getting really fugly...yen up 8.26% vs. kiwi....us taking another chunk down....gonna be another fun night on asian markets regardless of what US does rest of day.....let the panic really begin soon all i can say at this point is WOW and sit back and watch the fireworks. Shocked there is still no bounce just goes to show how much de-leveraging and forced selling is going on out there right now.
Tiznow, we are going to get a long overdue 5% + single day haircut.
Down more than 300 now and 67 nasdaq.
Anyone with an account at e-trade should transfer it immediately.
That stock looks like that company could be also go bust and they have 30 billion of mortgage exposure.
:howdy:
Down more than 300 now and 67 nasdaq.
Anyone with an account at e-trade should transfer it immediately.
That stock looks like that company could be also go bust and they have 30 billion of mortgage exposure.
:howdy:
argentina approaching 1 day "crash" territory, down 7.72%, 10% drop in a day generally considered a one day crash. My dxesx is gonna be a monster. 2x inverse the emerging markets.
http://stockcharts.com/h-sc/ui?s=dxesx&p=D&b=5&g=0&id=0
gold now has a 25 dollar haircut going on....so much for those gold coins i got laying around, time to start stuffing funny money dollars under my matress.
Nice (the bear fund)
.....BTW, I think the Fed outta stay out of it. Time for some of these hedge and mortgage fukkers to pay the fiddler. I thought the real purpose of the Fed was to control inflation? (manipulate may be a better term)Of course they won't allow the market to "crash", but how are we defining a "crash?"
hno:, how's this for some irony Woof. Yesterday they (on MSNBC) just got thru talkin up the bloodbath in the financials, particularily CFC. Goes to a commercial break and guess who?
